Global economic tensions mount as EU meets

South Korea | South Korea’s newly appointed Finance Minister,
Hyun Oh Seok
, urged international co-operation to tackle a “weak-yen problem" and said the Group of 20 nations should revisit the issue.

“Japan’s expansionary policies are having various ripple effects on many countries," Mr Hyun said. “The yen is depreciating while the won is gaining and this is flashing a red light for Korea’s exports."

Japan’s new central bank governor,
Haruhiko Kuroda,
is poised to boost monetary easing as part of a campaign against deflation, which has already driven down the yen by about 11 per cent against the United States dollar in the past three months.

US | The Senate has adopted a ­proposal that would modestly reduce US debt through higher taxes for top earners as part of the first budget plan the Democratic-controlled body has passed in four years.

The $3.7 trillion budget proposal, which won’t take effect, highlights differences between Democrats and Republicans over taxes, spending and the size of government. The vote clears the way for the next phase in Washington’s budget battle, which will probably revolve around the need to raise the US debt limit.

Financial markets have largely shrugged off concerns that US budget deficits have pushed the United States’ s debt to record levels.

Estonia | Estonian President Toomas Hendrik Ilves
said the euro was a “great currency" and the country’s ­decision to adopt it in 2011 had only benefited the economy.

“It’s given investor confidence," Mr Ilves said as he supported neighbouring Latvia’s application to join the euro at the start of next year, while the European Commission is set to issue its recommendation in late May or early June. Estonia imposed austerity measures, enduring one of the world’s worst recessions after the global financial crisis. “If you’re willing to follow the rules, it’s a great currency," he said. “I’m doing everything to support Latvia to join.